The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

28 This aid category has also been used in the tourism sector. In the SA.60265 103 case, the Croatian authorities notified a guarantee and loan measure for the “tourism and sport sector” (the decision specifically lists which NACE codes were eligible, but accommodation providers, tour operators and food services were included from the broader tourism sector) to improve the liquidity situation in the industry. The scheme included three measures: 3.1 TF guarantees on loans, guaranteeing the full loan up to the aid ceiling of 3.1 TF (Measure A), 3.1 TF loans, up to the aid ceiling (Measure B) and 3.2 TF guarantees for loans with a nominal value in excess of 3.1 TF levels (Measure C). This decision shows how 3.2 TF aid can be used to complement the measure when the aid ceiling in 3.1 TF is or might not be enough to cover the liquidity needs of larger beneficiaries. 6.1.3. Aid in the form of subsidised interest rates for loans Aid under Section 3.3 of the Temporary Framework (3.3 TF aid), “aid in the form of subsidised interest rates for loans”, is also liquidity aid, 104 and it complements 3.2 TF aid in the sense that the terms of the two aid categories are similar. In particular, 3.3 TF loans are also available for maximum six years; interest rates gradually increase during the term, and they can be modulated similarly to 3.2 TF guarantees. 105 Firms in difficulty are excluded according to the same criteria as in the case of 3.1 and 3.2 TF aid. 106 Also, while 3.2 TF guarantees cannot be granted for an aided loan under 3.3 TF, 107 the two aid categories are further connected by the rule that loans guaranteed under 3.2 TF and loans granted under 3.3 TF must fit under the same overall cap (set on the basis of wage bill, turnover or, exceptionally, liquidity needs). 108 3.3 TF loans can also be granted for any purpose, including investments. 109 Similarly to how 3.1 TF and 3.2 TF guarantees are compared, 3.3 TF loans are less flexible than 3.1 TF loans (the latter can be granted 103 Commission decision C(2021) 186 final of 11 January 2021 (SA.60265 (2020/N) COVID-19: Aid to the tourism and sport sectors) 104 Point 26 of the Temporary Framework. 105 Point 27(a), (b) and (c) of the Temporary Framework. 106 Point 27(g) and (g- bis ) of the Temporary Framework. 107 Point 26- bis of the Temporary Framework. 108 Point 27(a), (b), (d) and (e) of the Temporary Framework. 109 Point 27(f) of the Temporary Framework.